No impact of rare earth magnets shortage on production in near future: JSW MG Motor
JSW MG Motor on Wednesday said the global shortage of rare earth magnets, a key component in motors used for electric vehicles, has not impacted its production currently and is unlikely to impact it in the immediate future, but it is keeping a close watch on the developments.
The company, which launched its first premium car showroom, MG Select, in Thane in the Mumbai Metropolitan region, also said that the curbs by China on the supply of magnets have been impacting not only the EV makers but ICE (internal combustion engine) powered vehicle makers as well.
The company will put on display MG Cyberster and MG-9 -- Presidential Limousine -- at the Select showroom. The company has already announced its plans to set up 14 such outlets in 13 key cities by the end of Q3 of CY2025. These premium car showrooms will offer personalised services, an iconic product lineup blended with new age luxury, innovation, and sustainability to car buyers in India, as per the company."It is a serious issue. And it is an issue that we as an industry body are working alongside the government to get a resolution for. It (the restricted supply) impacts not just EVs (but) it impacts ICE products as well," Anurag Mehrotra, Managing Director, JSW MG Motor, told reporters in a post-event interaction.
He said it was important to ensure that, as an association, industry body, we work alongside the government to have this issue addressed, which is the key. JSW MG Motor India is a joint venture formed in 2023 between China-based SAIC Motor and India's JSW Group. "I think we are getting all the support right now from the government in terms of ensuring that they are able to push the discussions further to try and address these issues that are coming up. Because it impacts many components both in ICE and EV, so if someone thinks that this is only impacting EVs, that is not true," Mehrotra said.These are the components which go into many of the modules of the cars.And therefore, it is very important that the association is working very closely with the government to ensure that this issue does not impact the production for all OEMs. Whether it's passenger and commercial vehicles or two wheelers, everybody is going to see an impact of the same, he emphasised.He also said that while at this point of time (and) in the immediate future, it (the supply issue) is not something that is impacting the company's production, adding that "but we have to watch the situation very carefully." "Because at this point of time, because we have a longer lead time, which is a 3 -4 months of cycle. So the parts that we are getting today had a three-month cycle, which means the orders placed in April are being delivered now. Since the issue has surfaced in the last 3 -6 months, we have to very cautiously watch what happens in the coming months for us," Mehrotra said.When asked whether the company was getting any advantage in the supply of the rare earth, being partially owned by a Chinese firm, Mehrotra replied, "We are as impacted or not impacted as any other OEM in the country; there is no preferential treatment." The company's product range includes Hector, Gloster and Astor SUVs, ZS EV, compact EV Comet, and CUV Windsor EV.JSW MG Motor India has a manufacturing facility in Halol in Gujarat, with an annual production capacity of over 100,000 units. Stating that the two premium car models -- Cyberster and M9-- are built in many ways for India and are "affordable luxury" in many senses, JSW MG Motor Director Parth Jindal said this will elevate the MG brand in many ways. "It will showcase the true power of the technology that we have, the true power of the joint venture that we have between JSW and Shanghai Auto and we look forward to bringing more cutting edge products every year(and) this will be the first (in the series)." "Therefore, we have decided to first bring these two products in. Of course, there will be other products that we will bring. But the first two products are really where we believe we can disrupt the market and create a differentiation in the marketplace," Jindal added."Next year we hope to bring in more products and we will always bring in cars which are the newest in technology and aren't electric. They will be either electric or plug-in hybrid," he added.The company is set to reveal the prices of the two luxury EV car models later this month.When asked whether the company was looking at launching hybrid models as well, Mehrotra said, "So we have clearly articulated our playbook that we will focus on new energy vehicles to deliver clean mobility solutions. That is really the goal that we are working towards. And for clean energy, all powertrains that are required will be made available depending on the business case--whether it is for EVs, plug-in hybrids or hybrids." PTI IAS MR
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